Inflation Calculator
See how inflation erodes the value of money over time. Find out how much a sum will cost in the future, and how much your money's buying power will shrink at a given inflation rate.
Formula reviewed for accuracy. Our methodology & sources
Inflation Calculator
finance calculator
How It Works
Inflation compounds just like interest, but it works against you. The calculator raises your amount by the inflation rate once for each year to show what the same basket of goods will cost in the future, and divides by the same factor to show how little buying power your money will retain. This is why cash sitting idle quietly loses value, and why long-term savings usually need to earn more than the inflation rate just to break even.
Formula
Future Cost = Amount × (1 + rate)^years Buying Power = Amount ÷ (1 + rate)^years
Examples
$1,000 at 3% over 10 years
Goods costing $1,000 today will cost about $1,344 in 10 years.
Frequently Asked Questions
How does inflation affect my money?
Inflation reduces purchasing power: the same amount of money buys fewer goods over time. At 3% inflation, $1,000 today will only buy about $744 worth of goods in 10 years.
What is a normal inflation rate?
Central banks typically target around 2% annual inflation. Historically, US inflation has averaged about 3% per year, though it spiked higher in 2021-2023.
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